Abstract:
The demand for proper financial management in schools is dictated
by the South African Schools Act 84 of 1996, Section 43(1) (RSA,
1996), according to which public schools must retain a suitably
qualified accountant registered in terms of the Public Accountants
and Auditors Act, 1991 (RSA, 1991), to audit the school’s financial
records and statements. This study is aimed at understanding
the experiences of school financial management stakeholders on
auditing of public schools’ financial records. This study investigated
the schools’ financial management stakeholders’ experiences
of the auditing of public schools’ financial records. A qualitative
approach was applied in the study. Semi-structured interviews were
used to collect data from three purposefully selected secondary
schools in which principals, chairpersons of the finance committees
and finance officers were involved. A multiple-case study design
was applied. Thematic data analysis was used to analyse the
collected data. All the participants demonstrated limited knowledge
and understanding of the processes and procedures of auditing
financial records, including an inability to interpret the audited
financial reports. However, the participants revealed the benefits of
audited financial reports, such as trust from parents in how school
finances are managed. Furthermore, the study revealed that
audited financial reports may benefit schools to seek and apply
for additional funding from businesses and other organisations.
The study implies that schools may have difficulty in securing more funding from private organisations if their financial records
are not appropriately audited. Hence, the study recommends
that the Department of Education should offer sufficient support
and training to school financial management stakeholders about
auditing processes and procedures as well as financial auditing
report interpretation.
